Westland delivers strong profit result

• Published date: 24 April 2024
• Publication title: Central Rural Life

Westland this month announced an after-tax profit of $55.9million for 2023, more than double a targeted $20 million annual return. The 2023 profit is above 2022’s $38.9 million record-breaking result, a $120million rebound on 2021

Westland chief executive Richard Wyeth said the company would maintain its push towards long-term profitability by continuing to divert more milk solids into higher-value products in 2024.

Westland recently committed to pay farmers the 10c premium above Fonterra’s Farm Gate Milk Price for the 2024-25 and 2025-26 seasons, extending and improving on payment terms made under the original Scheme of Arrangement when the company was purchased.

‘‘We’re proud of this result, but we know we still have plenty of room for improvement,’’ Mr Wyeth said. ‘‘We’re tracking well to deliver on our five-year commitment to build sustainable growth year on year. A sustainable financial base means we can continue to offer farmers very competitive terms for their milk.’’

Revenue of $1.065billion was slightly above last year’s result and very pleasing given the fall in global dairy prices, he said.

‘‘The advantage we have of course is the backing of one of the world’s largest dairy companies in Yili.

‘‘Yili’s support has enabled us to invest heavily in infrastructure that will maximise revenue from high-margin products.

‘‘But our ability to remain competitive on milk prices must rely on our ability to stand alone on financial performance.’’

A $70million investment in a new lactoferrin plant at the company’s Hokitika plant supported by...